Bitcoin Reclaims $28K, Charts Suggest ARB, XRP, EOS, and AAVE Could Follow

The United States looks to avoid a catastrophic debt default after the White House and House Republicans agreed on a tentative deal on May 27. US equity markets rallied in anticipation of the May 26 deal and positive sentiment has rubbed off on the cryptocurrency sector, which is attempting a recovery.

The buying is not limited to Bitcoin (BTC) as select altcoins are also showing signs of short-term up-move. However, sustaining the rally at higher levels may prove difficult for the bulls.

Following the debt ceiling deal, traders are likely to turn their attention to the Federal Reserve’s rate hike. Warm personal consumption expenditure data on May 26 raised the likelihood of a rate hike at the Fed’s June meeting. According to CME Fedwatch, the probability of an increase of 25 basis points has increased from 17% a week ago to 64% on May 28. tool,

Along with bitcoin, which altcoins look ripe for a short-term up move? Let’s study the charts of these top five cryptocurrencies to see the important levels.

bitcoin price analysis

Bitcoin has reached an overhead resistance zone between the 20-day exponential moving average ($27,146) and the support line of the symmetrical triangle. A solid fight can be seen between the bulls and bears in this area.

If there is a downside break from the overhead area, the bears will make another attempt to drag the price towards the key $25,250 support. The bulls are expected to defend the $25,250 and $24,000 area, as a break below it could trigger selling. Then the BTC/USDT pair could decline to $20,000.

Conversely, if buyers clear the overhead barrier and push the price back into the triangle, it would suggest strong buying on dips. This increases the chances of a break above the resistance line of the triangle. The pair could then rise to $31,000.

The 4-hours chart shows that the pair is trading inside a descending channel pattern and the bears are trying to defend the resistance line. If the price turns below the current level but breaks away from the 20-EMA, it will signal that the dips are being bought.

The bulls will again try to push the price above the channel. If they succeed, the pair could start a rise towards $28,400.

Conversely, a break below the moving averages would suggest that the pair could extend its stay inside the channel for some more time.

xrp price analysis

XRP (XRP) has formed an inverse head and shoulders pattern, which will complete on a break and close above the neckline.

The 20-day EMA ($0.45) is slowly rising, and the RSI has jumped into the positive zone to indicate that the path of least resistance is to the upside. If the bulls drive and sustain the price above the neckline, the XRP/USDT pair could start a rally towards the overhead resistance area between $0.54 and $0.58. The pattern target of the bullish setup is $0.55.

This positive outlook will be negated in the near term if the price breaks below the neckline and breaks below the 20-day EMA. The pair could then decline towards the important support near $0.40.

The 4-hour chart shows that the pair is witnessing a tough fight between the bulls and bears near the neckline. The 20-EMA and RSI are moving in the positive zone, indicating modest gains for the buyers.

If the price bounces off the 20-EMA, it will become more likely to break above $0.48. If this happens, then the pair is likely to move higher. Alternatively, if the price declines and breaks below the moving averages, it will tilt the short-term advantage in favor of the bears. The pair could then decline to $0.44.

arbitrum price analysis

Bulls pushed Arbitrum (ARB) back above the 20-day EMA ($1.17) on May 28, indicating the start of a potential recovery.

The bears are likely to mount a strong challenge at $1.20, but if the bulls break this level, the ARB/USDT pair could pick up momentum. There is a minor resistance at the 50-day simple moving average ($1.29) but it is likely to be surpassed. The pair could then climb to $1.36 and later to $1.50.

If the bulls want to halt the rally, they will need to quickly pull the price back below the 20-day EMA. If they manage to do so, the pair could drop to $1.06 and then to $1.01. This is an important area for the bulls to defend as if it breaks, the pair could drop sharply to $0.73.

The 4-hours chart shows that the bulls have pushed the price above the resistance line of the symmetrical triangle pattern. The bears are trying to stop the upward move at $1.20, but if the bulls do not allow the price to re-enter the triangle, it will increase the chances of an upside breakout. The pattern target of the setup is $1.43.

Conversely, if the price turns down and breaks back into the triangle, it would suggest that the recent breakout could be a bull trap. The bears will then try to sink the price back towards the support line of the triangle.

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EOS token price analysis

Eos (EOS) has been swinging between $0.78 and $1.34 for the past several months. Usually in such a wide range, traders buy near support and sell near resistance.

The EOS/USDT pair bounced from $0.81 on May 25 and climbed above the 20-day EMA ($0.89) on May 28. This is the first indication that the range is intact. The bulls will try to push the price towards the 50-day SMA ($1), where the bears are likely to mount a strong defence.

If the next decline finds support at the 20-day EMA, it will suggest that the bulls are at the top. The pair could then rise to $1.11. The bears need to drag the price below the key $0.78 support to signal the start of a downtrend.

The recovery attempt is facing selling near the overhead resistance at $0.93, but the bulls have not given up much ground. The moving averages have completed a bullish crossover and the RSI is near the overbought zone to show that the bulls have the upper hand.

If the buyers drive the price above $0.93, the pair could gain momentum and move higher towards the psychological level of $1 and later $1.11. This positive view may be invalidated in the near term if the price declines and breaks below the moving averages.

Aave Price Analysis

Aave (AAVE) is falling inside a descending channel pattern, which generally behaves as a bullish setup.

After struggling near the 20-day EMA ($65.50) for the past few days, the bulls pushed the price above the resistance on May 27. This signals the start of a possible relief rally.

The AAVE/USDT pair may first rise to the 50-day SMA ($70) and then attempt a rally to the resistance line. A break and close above this level could initiate a short-term up-move.

Contrary to this assumption, if the price turns down from current levels and breaks below the 20-day EMA, it would suggest that demand has dried up at higher levels. The next support on the downside is at $62.

The 4-hours chart shows the formation of an ascending triangle pattern that will complete on a break and close above $67.40. The pair could then start an upward move towards the pattern target of $74.

Instead, if the price turns down from the current levels, it would indicate that the bears are fiercely defending the $67.4 level. If the price breaks below the moving averages, it would suggest that the pair could remain inside the triangle for some more time. A break below the triangle would invalidate the positive setup, tilting the gains in favor of the bears.